HR Exam 3

compensation

includes all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship

incentive pay

forms of Pay linked to an employee’s performance as an individual, group member, or organization member

effective incentive pay requirements

1. Performance measures are linked to the organization’s

goals.

2. Employees believe they can meet performance

standards.

3. Organization gives employees the resources they need to

meet their goals.

4. Employees value the rewards given.

5. Employees believe the reward system is fair.

6. Pay plan takes into account that employees may ignore

any goals that are not rewarded.

incentive pay can be based on (3)

individual performance, group performance, organizational performance

pay for individual performance (5)

piecework rate

standard hour plans

merit pay

individual bonuses

sales commissions

piecework rate

pay based on the amount workers produce

straight vs differential piecework rates

employer pays same rate per piece

piece rate is higher when a greater amount is produced

merit pay

system of linking pay increases to salary to ratings on performance appraisals

compa-ratio

a measure that expresses current pay rates as a % of range midpoints

what indicate whether the employee is paid below at or above market rates

given the midpoint of a pay range represents full market pay, the ratio of the employee’s actual salary to that midpoint

equation for compa-ratio

actual salary/midpoint of salary range x 100 = compensation ratio

commonly accepted range for compa-ratios

80%-120%

five zones of comma-ratio percentages

80-87

88-95

96-103

104-111

112-120

80-87 range

new-inexperiences performing incumbents

88-95 range

gaining experience but not yet fully competent int he job

96-103 range

fully competent performers performing job functions

104-111 range

consistently performing job functions at a level higher than what the job def requires

112-120 range

universally recognized as outstanding performers

advantages and disadvantages to merit pay

able to reward all aspects of employee’s performance that are measured

can be too expensive for company

employee performance might not be entirely under their control

might discourage teamwork

sales commissions

incentive pay calculated as a % of sales

John works twisting pretzels in a pretzel factory.

Pablo works on IT systems integration at a credit card

company. The best pay plans for these individuals

would be ________ and _______, respectively.

A. Merit pay, individual bonus

B. Sales commissions, merit pay

C. Piecework, merit pay

D. Individual bonus, sales commissions

E. Merit pay, piecework

C

pay for group performance (3)

gainsharing, group bonuses, team rewards

gainsharing

measures increases in productivity and effectiveness and distributes a portion of each gain to all employees in a unit

gainsharing advantages

addresses challenge of identifying appropriate performance measures for complex jobs

frees employees to determine how to improve their group’s performance

Brendan, the HR manager at Baretta & Co., is trying to implement an

incentive plan which measures the department’s effectiveness and

distributes a portion of its earnings to all employees in the department.

In this case, Brendan’s plan is an example of _________.

A. A piecework rate

B. Gainsharing

C. Group bonuses

D. Sales commission

E. Team awards

B

pay for organizational performance (3)

profit sharing

stock options

employee stock ownership plans (ESOPs)

profit sharing

Incentive pay in which payments are a percentage of the

organization’s profits and do not become part of the employees’

base salary

stock options

Rights to buy a certain number of shares of stock at a specified price

ESOPs

Organization distributes shares of stock to all its employees by placing it

in a trust

Rights to buy a certain number of shares of stock at a

specified price is:

A. Profit Sharing

B. Employee Stock Ownership Plans (ESOP)

C. Merit-based Pay

D. Incentive Pay

E. Stock Options

E

power

the means to enforce your will over others

five bases of power

legitimate power, reward, coercive, expert

legitimate power

obtain compliance because of formal authority

reward power

obtain compliance by promising or granting rewards

coercive pwoer

make threats of punishment and deliver actual punishment

expert power

having knowledge or info that others need

responses to power (3)

commitment, compliance, resistance

Gru promised his employees that if

they reached the goal of fewer than 5

customer complaints during December,

he would take them out to ice cream.

What type of power is Isaac using and

what is his likely result?

A. Coercive, commitment

B. Positive legitimate, compliance

C. Expert, resistance

D. Referent, commitment

E. Reward, compliance

E

empowerment

consists of effort to enhance employee performance, well being, and positive attitudes by giving employees greater influence

benefits of empowerment

increased motivation, productivity, and efficiency

required elements of empowerment

information sharing

employee development

allowing employees to make substantive decisions

rewarding employees based on company performance

Gru is asking advice about how to effectively empower

her employees. Which of the following is NOT good

advice?

A. Only share responsibilities with those who are

competent to do what is necessary.

B. A manager needs to be careful when

empowering employees because it will decrease

the manager’s power.

C. Use job design and the job characteristics model

as a way of empowering employees.

D. The extent to which employees have positive

self-evaluations will enhance their sense of

empowerment.

E. A common element of empowerment involves

pushing decision-making authority down to lower

levels.

B

power vs status similarities and differences

sources of potential influence over others

power is more limited in scope

resources that power holders have are relatively tangible, the outcome that status holders can influence are relatively intangible

9 common influence tactics

rational persuasion, inspirational appeals, consultation, ingratiation, personal appeals, exchange, coalition tactics, pressure, legitimating tactics

rational persuasion

trying to convince someone with facts

inspirational appeals

trying to build enthusiasm by appealing to other's’ emotions

consultation

getting others to participate in planning and making decisions

ingratiation

getting someone in a good mood prior to making a request

personal appeals

referring to friendship or loyalty when making a request

exchange

making explicit or implied promises and trading favors

coalition tactics

getting others to support your efforts to persuade someone

pressure

demanding compliance or using intimidation or threats

legitimating tactics

basing a request on one’s authority or right, organizational rules, or implied support from superiors

what falls under soft tactics

rational persuasion, inspirational appeals, consultation, ingratiation, personal appeal

what falls under hard tactics

exchange, coalition, legitimating, pressure

least effective tactics

coalitions, legitimacy, and pressure

most effective tactics

consultation, inspirational appeals, rational persuasion

Gru promises Bob that he will

buy him dinner if Bob helps

him out. Bob agrees. Which

influence tactic did Gru use?

A. Coalition

B. Pressure

C. Exchange

D. Rational persuasion

E. Ingratiation

C

Margo believes using soft influence tactics are more effective than using

hard tactics. Which of the following tactics is Margo most likely to use?

A. Basing requests on her authority or rights

B. Getting others to support her efforts to persuade someone

C. Using intimidation and threats

D. Building enthusiasm by appealing to her employees’ emotions

E. Making explicit promises

D

organizational politics

intentional acts in pursuit of self-interests that conflict with organization interests

impression management

any attempt to control or manipulate the images related to a person, organization, or idea using speech, behavior, or appearance

organizational culture

the set of shared, taken for granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments

four characteristics of organizational culture

shared concept, learned over time, influences behaviors at work, impact outcomes at multiple levels

levels of organizational culture

artifacts, espoused values, basic assumptions

observable artifacts

the physical manifestation of an organization’s culture, what u see and hear

espoused values

explicitly stated values and norms that are preferred by an organization

enacted values

values and norms that are actually exhibited or converted into employee behaviors

what is core4 and what is it under

caring, safe, dependable, and efficient

under espoused values

basic underlying assumptions

organizational values that have become taken for granted

Monsters, Inc. states that they are a “moving, flexible,

innovative, customer-oriented global company that delivers

real value to our shareholders by our unrelenting focus on

performance and the unswerving dedication of our world-

class, dedicated employees.” What level of organizational

culture does this represent?

A. Observable artifacts

B. Enacted values

C. Espoused values

D. Basic underlying assumptions

C

organizational socialization

process through which an individual learns values, norms, skills, attitudes, and required behaviors which permit him/her to participate as a member of an organization

phases of socialization

anticipatory socialization, encounter, change and acquisition

anticipatory socialization

occurs before an inivudal actually joins an organization

encounter

employees come to learn what the organization is really like

change and acquisition

requires employees to master important tasks and roles and adjust to their work group’s values and norms

onboarding programs

under phase 2 (encounter); programs helping employees to integrate, assimilate, and transition to new jobs

Amy has recently joined a new research institute. She had

initially thought that her job would entail a lot of field work,

which would allow her to gain some practical experience, but

her manager just gives her a lot of paperwork instead. She is

also learning to adjust to the strict dress code that the

company enforces on all of its employees. Amy is in the

_________ stage of the socialization process.

A. Change and acquisition

B. Anticipatory socialization

C. Adaptive

D. Encounter

D

four functions of organization culture

establish organization identity, encourage collective commitment, act as sense-making device, ensure social system stability

four truths about culture change

1. Leaders are the architects and developers of organizational change.

2. Changing culture starts with one of the three levels of organizational

culture: artifacts, espoused values, basic underlying assumptions.

3. Consider how closely the current change aligns with the organization’s

vision and strategic plan.

4. Use a structured approach when implementing culture change.

conflict

occurs when one party perceives that its interests are being opposed or negatively affected by another party

functional conflict

Constructive or cooperative conflict

characterized by consultative interactions, a focus on the issues,

mutual respect and useful give and take.

dysfunctional conflict

Conflict that is detrimental to organizational

goals and objectives and threatens an organization’s interests.

causes of conflict

structural factors, communication, cognitive factors, indivueal characteristics, history

group related conflict

relationship, task, and process

task conflict

conflict related to work content and goals

process conflict

conflict that arrises over responsibilities and how work should be completed

intergroup conflict

too much cohesiveness can increase “in-group” thinking

how to handle intergroup conflict

contact hypothesis and conflict reduction

contact hypothesis

the more members of different groups interact, the less intergroup conflict they will experience

conflict reduction

ways to reduce conflict such as encourage and facilitate friendship via social events

Differnet conflict resolution strategies

obliging, integrating, compromising, avoiding, dominating

obliging

lose-win; appropriate for when you think you’re wrong

obliging strength and weakness

encourasges cooperation

temporary fix

integrating

win-win; appropriate for complex issues

integrating strength and weakness

deals with underlying problem

time consuming

avoiding

lose-lose; passive withdrawal from problem or active suppression of the issue

avoiding strength and weakness

buys time

temporary fix and sidesteps underlying problem

dominating

win-lose; appropriate when deadline is near

dominating strength and weakenss

speed

breeds resentment

Isaac is a manager at a small pirate ship. He is working with an

unhappy customer who is yelling at him. Isaac’s policy on handling

customer complaints is to give the customer what they want even at

a cost to the company. This represents the _________ handling

style.

A. compromising

B. integrating

C. obliging

D. avoiding

E. dominating

C